All that happened in markets this week

All that happened in markets this week

Last updated: 24 Sep, 2021 | 11:56 am

Market wrap: Sensex, Nifty notch up new record highs as rapid vaccination, policy support boost sentiments

On Monday, the domestic equity benchmarks ended near the day's low amid heavy sell off on Monday. Weak global cues spoiled sentiment. Barring the FMCG index, all the sectoral indices on the NSE ended in the red. Metal and bank shares witnessed major selling. 

On Tuesday, the key equity indices reversed early losses and ended with sharp gains on Tuesday. Recovering global cues boosted sentiment. The Nifty closed above the 17,550 mark. Metal and realty shares bounced following a recent selloff. 

On Wednesday, the key equity indices ended with small losses after a volatile session.

Gains were capped as investors were cautiously awaiting the outcome of the FOMC meeting for signals regarding the U.S. central bank's plans to taper its bond buying. Ongoing debt crisis at China's real estate giant Evergrande also dented sentiment. 

On Thursday, the domestic equity barometers ended near the day's high after a robust session on Thursday. The Nifty closed above the 17,800 mark. The rally was caused by investors cheering the U.S. Federal Reserve's decision to keep interest rates unchanged Wednesday. The central bank signaled that it would trim its monthly bond-buying program before year-end.

On Friday, the indices ended with modest gains on Friday. The Nifty closed a tad above the 17,850 mark. Sensex touched the 60000 mark for the first time ever. IT shares advanced after Accenture announced strong Q4 earnings. Autos, banks, and realty stocks advanced while metals, FMCG and media stocks witnessed selling. 

Top gainers and losers

  • The top gainer for the week was Bajaj Finserv.
  • Tata steel was the biggest loser of the week due to the scare caused in the markets by the Evergrande crisis in China.
  • Nifty Realty was the top gaining sector while Nifty PSU bank was the top loser.

Here is a quick recap of the market moving developments:

Paras Defence became the most subscribed IPO: Paras Defence and Space Technologies IPO opened for subscription on Tuesday and closed on Thursday. Paras Defence raised upto Rs 171 cr at an implied market cap of Rs 683 cr at the upper end of the price band. It became the highest ever subscribed IPO at 304 times in the Indian capital market’s history. 

Evergrande crisis:  Evergrande, China's second largest real estate developer, was caught in the spotlight when the news broke out about its chances of defaulting on its upcoming debt payment of $83.5 million on Sep 23 (Thursday). Evergrande accumulated a debt of $300 billion as it went on a debt-fueled expansion over the years. However, property sales have been declining for months, constraining its cash flow further. Evergrande was also caught out by new borrowing limits that China’s regulators imposed on real estate-related borrowing. Being unable to borrow more via bonds, the company’s liquidity position further got worse.

Fed open market committee: Federal Reserve Chair Jerome Powell said the U.S. central bank could begin scaling back asset purchases in November and complete the process by mid-2022. Powell also said he didn’t expect the Fed to begin rate increases until after completing the taper process.

Sansera Engineering IPO: Shares of Sansera Engineering ended at Rs 818.95 on the BSE, at a premium of 10.07% as compared with the issue price of Rs 744 per share. The scrip was listed at Rs 811.35, a premium of 9.05% to the initial public offer (IPO) price.

That’s all for this week’s market wrap. We will be back with more interesting market insights in the next week!

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